Reserve Bank of India is all set to file a review petition in Supreme court against dismissing of its circular intended at restricting cryptocurrency trading across India, according to Economic Times (ET).
ET report claims that the central bank has expressed apprehension that SC ruling may put India’s financial and banking sector at risk. It is still not known as to when RBI plans to file the review petition in the apex court.
With RBI planning to go for a review petition, the Indian cryptocurrency firms that shifted their base to foreign countries may now decide to postpone their homecoming.
SC said in its judgment that the right to create new industry of cryptocurrencies and other exchanges falls within the purview of fundamental laws. The apex court also maintained that RBI had failed to convincingly demonstrate that trading in virtual currencies would put India’s banking industry at great risk.
RBI’s circular banning the cryptocurrency trading was issued on April 2018, which eventually propelled India’s nascent cryptocurrency industry into great crisis. It forced many fledging startups to shut their shops while many decided to shift their base outside India.
The central bank’s circular also forced several banks to suspend the accounts of the top cryptocurrency platforms. However, banks may now revoke the suspension following the SC judgment, the ET report claimed.
Ever since cryptocurrency – especially Bitcoin – became the buzzword across the world, the Indian government and RBI have been aggressively cracking down on virtual currencies.
Late Finance Minister, Arun Jaitely, had gone to the extent of terming cryptocurrencies as Ponzi schemes.
